We always wish to get lucky. People take pride in broadcasting that they lucky to win the lottery, coupons, gift vouchers and windfall of money in one way or the other. But should we be dependent on our luck to succeed instead of choosing right path and get succeeded.
In our day to day life, we are engaging all our senses to make decisions but ignoring the most powerful sense i.e. Money Sense. Everyone of us is working day and night very hard to earn our livelihood and to make our life better, to increase the standard of living but we are not thinking about the effective utilisation of money. We are spending money and not utilising the same.
What do we Mean By Spending: Spending the Money means buying the same thing which you already have like subscribing to multiple online channels (Netflix, Amazon Prime, Zee Five Original), More pairs of shoes & bags, Gadgets with same repetitive functionality (Smart band, Smart Watch, Bluetooth Headsets, EarPods, Tablet), Copy Cat approach (Digital Camera bought by Dear Friend), Status Symbols (iPhone – MacAir – most of the people don’t even use 10% of its functionality, Wrist Watches, Fountain Pen, Bikes, Expensive Painting, Showpiece, Artefacts).
What is Utilisation of Money means buying the things which are needed or compulsory for the day to day life or investment like Subscribing online Newspaper, Upgrading your Academic Skills, Investing in Stock Market with strategy, travelling to different places to learn local culture & heritage, joining and building library, donate to various education centered NGO’s, visiting old age home,
Let’s choose the path of financial freedom: Stop struggling and start managing the finance. Everyone should take few relevant and most basic steps for managing the finance. Few example of the same are listed below
- Make monthly expense and income statement. This could be the simple cash in and out flow statement for the month
- Make the list of Wants and Don’t Want (purchase of which could be postponed)
- Make the list services used on monthly basis (like telephone, newspaper, electricity bill, internet, mobile recharge, society maintenance etc). Then look up for the offer for the combination/consolidation of services. Like combine the mobile and internet connection for better billing, pay the society maintenance in advance if discount is offer, go for the subscription based service instead of piecemeal payment
- Start investing through the SIP route. The SIP should be consist of Equity and Debt portion as per the risk appetite of the investor
- Make the money to work for your you and not the other way round. List the long term and short term goal and invest accordingly
- Make a list of credit card payment due date. So that additional fee on late payment could be avoided. Also start paying little more than the minimum due on credit card. This will help to reduce the principal amount
- Save a little more every month to do the prepayment of the Home loan at the periodical interval of time. This will lead to substantial saving on interest portion of loan
- Take life insurance policy i.e. term insurance
- Take medical insurance i.e. family and comprehensive insurance policy
- Sell unnecessary electronic gadgets, extra & used pair of shoes, clothes or any other item. This will help you to earn extra cash. Also get rid off the future liability of repair and maintenance in case of gadgets
- Start investing in yourself. Learn new thing and upgrade your skills. This will open up the new opportunity in career path
- Start utilisation of your spare time. Identify your interest or passion and covert it into a commercial activity like teaching online, writing blogs or articles, writing reviews (about films, products etc), content writing, make and sell artistic items (painting, sculptures, artefacts), vlogging
- Go for the preowned goods (wherever possible) this could help to save cash outflow and fulfil the need. Now days people can get really good stuff at a good price tag
- Switch the job, to earn and save extra. People first increases their expenses then they start struggling to meet their expenses from the existing salary. So they change the job to meet the increased expenses. Such practise should be avoided
- Start your own venture, nuture it and convert it into a money making machine or process. If you have a unique idea which solve the existing problem of society then check its commercial viability and start the Business